Simple Actionables for Novice Forex Traders

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Everyone dreams of becoming a successful trader. Due to the extreme degree of profit potential, the number of retail traders in the online trading industry is ever increasing. Many novice traders have been able to master the art of trading in a short period of time. However, the good number of traders are losing money due to their lack of knowledge and experience. This article is for novice traders.

Don’t over trade the market

Majority of retail traders are losing money because they over trade without properly considering the risk factors. Biased decision making with only profit factors in mind will end up burning you bad. When you over trade the market, you increase your risk percentage. Without proper technical analysis this is a bad thing to do. Learn to control your emotion. If you face a losing trade, then don’t immediately set out to recover your loss. You need to have extreme levels of patience to wait for the best trade setup to appear. You should be doing market analysis in the higher time frame as it can reduce the rate of your trade execution.

 Price action trading strategy for the win.

If you ask an expert trader for their strategy to trade currency to make a profit on a regular basis,  they won’t give you an exact answer. However, we will help you out with the answer. We know everyone needs a balanced trading system to trade effectively in this market. So learn price action trading strategy instead of using the indicators based trading system. Price action trading strategy is based on the different formations of the Japanese candlestick pattern and it brings in a lot of precision to the traders to trade key support and resistance level.

Say no to bots and EAs

Some retail traders will suggest you to trade this market by making use of bots and EAs. If you do a simple google search, you will find tons of websites on the internet who will be giving you 100% money back guarantee for their EAs and bots. However, in real life trading, bots and EAs aren’t of much help to you. These are coded trading strategies and as a currency trader you will have to understand the sentiment of the market. Sentiment analysis is most reliable way to find the strength of the market trend. The market isn’t always rational and it will often ignore the technical and fundamental analysis data and go in favor of the market sentiment. A manual trading system can help you in times like this.

The dynamic nature of the Forex market makes it a lot difficult for newbies. The best way to learn currency trading within a short period time is to use online platforms such as ETX Capital.

Conclusion

I hope this article was useful for you to learn about the key reasons why online forex trading is a good investment and how you can earn money through it. If you have any doubts with regards to this, let us know through the comments and we will be glad to help you out. If you have any suggestions regarding how we can improve the article, let us know them through the comments as well for us to improve.

Though it’s a reliable source of income, you will have to educate yourself properly before you start investing. It is important that you take the time to understand why things are the way they are before you jump all in and start making your first big bucks. All the best for your future ventures and keep coming for more interesting and useful articles.

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